Check New Nps Vatsalya Scheme 2024, Calculator, Tax Regime, Account : National Pension Scheme in Union Budget 2024.
New Nps Vatsalya Scheme 2024 :
The NPS Vatsalya is a new pension plan for minors that was introduced in the Union Budget 2024, which was given to the parliament on July 23 by Finance Minister Nirmala Sitharaman. This enables guardians or parents to set up a pension for their offspring.
Through the project, parents and guardians can start their minor child’s NPS account, laying the groundwork for early financial responsibility. According to an Economic Times story, Max Life Pension Fund Management CEO Ranbheer Singh Dhariwal said, “These accounts allow a smooth continuation of savings habits into adulthood as they transition into regular NPS plans upon adulthood.” Furthermore, the suggested rise in employer contributions to NPS from 10% to 14% highlights the significance of employers in promoting long-term social security and financial support for their employees.
The NPS Vatsalya Scheme :
The National Pension Scheme (NPS) Vatsalya Scheme, which is part of the Budget 2024 proposal, allows parents and guardians to initiate an NPS for their offspring. In accordance with this program, parents and guardians can register an NPS account for their kids and make monthly or annual contributions until the kid turns 18 years old.
The NPS Vatsalya plan can transformed into a conventional NPS account that the child can handle on their own once they reach the age of majority (18 years). When the child turns eighteen, the accumulated contribution amount in the NPS Vatsalya account will moved to the regular NPS account.
The current NPS will have a customized version called NPS Vatsalya.specifically for young people. Through this program, parents can open accounts and make contributions to their children’s retirement funds.
Individuals can support their retirement needs with pension income through the Central Government’s NPS system. Therefore, one of the best retirement plans that ensures the child’s financial security is the NPS Vatsalya scheme.
NPS Vatsalya Scheme’s advantages :
- Children’s savings habits will encouraged by the NPS Vatsalya Scheme because the account can changed to a regular NPS scheme when the child turns 18. As such, they are able to independently maintain it and add to the account.
- The NPS program provides portability, meaning that a person’s NPS account is unaffected by changing jobs. When a kid reaches majority, their NPS Vatsalya account can converted to an NPS account, which can maintained throughout the child’s lifetime and serve as a solid retirement fund.
- Because payments to the NPS Vatsalya account start when the child is still a minor, it’s a good alternative for retirement savings. Thus, when the child retires, a sizable sum will have accumulated. At Sixty percent of the total amount deposited into the NPS account may withdrawn at retirement.
- The NPS Vatsalya account can changed into a regular NPS account after the child reaches major. Because the child must contribute 40% of the total NPS amount to an annuity plan, when the child grows up and reaches retirement age, he or she can get good returns to live a pleasant retirement.
- NPS Vatsalya provides families with a methodical way to guarantee the financial stability of their offspring in the future.
- A useful tool for ensuring a child’s financial security and building a retirement corpus is the NPS Vatsalya Scheme.
Tax Benefits of the National Pension Scheme :
1.Benefits of Employee Taxation on Self-Contribution :
The following tax advantages are available to employees who make contributions to NPS:
- Under Section 80CCD(1), there is a tax deduction of up to 10% of pay (Basic + DA), with a maximum of Rs. 1.5 lakh under Section 80CCE.
- A tax deduction of up to Rs. 50,000 under Section 80CCD(1B) and a maximum of Rs. 1.5 lakh total under Section 80CCE are both applicable.
2. Benefits Of Employee Taxes On Employer Contributions :
An employee’s employer’s contribution to their NPS is eligible for a tax deduction of up to 10% of their base pay plus bonus (DA), or 14% of their base pay if the Central Government makes the contribution under Section 80CCD(2) and exceeds the Rs. 1.5 lakh threshold set forth in Section 80CCE.
3. Tax Benefits for Independent Contractors :
The following tax advantages are available to self-employed individuals who make payments to NPS on their own behalf :
- Under Section 80CCD(1), there is a tax deduction of up to 20% of gross income; however, Section 80CCE sets a maximum of Rs. 1.5 lakh.
- A tax deduction of up to Rs. 50,000 under Section 80CCD(1B) and a maximum of Rs. 1.5 lakh total under Section 80CCE are both applicable.
National Pension Scheme Eligibility :
- Must a non-resident Indian (NRI) or an Indian citizen, either a resident or non-resident.
- Age range should 18–70 years old.
- must adhere to the Know Your Customer (KYC) guidelines as stated in the application.
- In accordance with the Indian Contract Act, one must legally qualified to execute a contract.
- NPS subscriptions are not available to Persons of Indian Origin (PIOs), Overseas Indian Citizens (OCIs), or Hindu Undivided Families (HUFs).
- Since NPS is a personal pension account, it cannot opened on someone else’s behalf.
The National Pension Scheme (NPS): How Do I Invest ?
Process Offline
- You must locate a PoP, or Point of Presence, that is registered with the PFRDA in order to open an NPS account offline or manually.
- This PoP could a bank. Get a subscriber form from the PoP closest to you, fill it up, and send it in with the KYC documents.
- If you already have KYC compliance with that bank, disregard that.
- Following your initial deposit of at least Rs. 500, Rs. 250 per month, or Rs. 1,000 per year, you will receive a PRAN (Permanent Retirement Account Number) from PoP.
- You can manage your account with the use of this number and the password found in your sealed welcome kit.
- For this procedure, there is a one-time registration charge of Rs. 125.
Process Online
- An NPS account can now opened in less than 30 minutes.
- If you link your account to your PAN, Aadhaar, and mobile number, opening an account online at is simple.
- The OTP that was delivered to your mobile device can used to verify the registration.
- You can use this to generate a PRAN (Permanent Retirement Account Number) for NPS login.
How do you Login National Pension Scheme account ?
- You need to have a 12-digit Permanent Retirement Account Number (PRAN) in order to access your NPS account. To obtain PRAN, submit the required paperwork at the Point of Presence (POP) service providers or on the NSDL website.
- Go to the NSDL CRA’s official website.
- Type in your PRAN, birthdate, new password, password confirmation, and captcha. Once all the information has been input, press the submit button.
- You can use the IPIN that is produced to log into the NSDL site.
- Select “Login with PRAN/IPIN” after logging into the NSDL eNPS website.
- In the the following page, log into your NPS account using your IPIN and PRAN.
| Particulars | NPS Tier-I Account | NPS Tier-II Account |
| Status | Default | Voluntary |
| Withdrawals | As per the rules/regulations | Permitted |
| Tax exemption | Up to Rs 2 lakh p.a.(Under 80C and 80CCD) | 1.5 lakh for government employees Other employees-None |
| Minimum NPS contribution for opening an account | Rs.500 | Rs.1,000 |
| Minimum NPS contribution | Rs 500 per month or Rs 1,000 p.a. | Rs 250 |
| Maximum NPS contribution | No limit | No limit |
Documents Required to Open NPS Account :
Individuals residing in India need the following documents for NPS account opening:
- A recent photograph
- PAN card
- Proof of address
- Bank account details
The NPS Calculator :
An NPS calculator is one tool that might assist you in calculating the returns on your NPS investments. To acquire an estimate of the retirement corpus you can accumulate over time, you can submit a few basic facts. If you start investing in NPS right now, you may use the NPS calculator to determine how much of a tax-free lump sum payment and how much lifetime pension income you would earn from NPS investments.
Using the NPS calculator, you can also determine how much tax savings you can receive from investing in NPS. That’s covered by sections 80CCD(1) and 80CCD(1B) of the Income Tax Act. Additionally, the lump sum you remove from retirement is tax-free as capital gains, and your
There are two applications for the NPS calculator:
- Investment Amount Approach: For a given investment amount, this method should used to calculate the future value of your retirement corpus.
- The Retirement Goal Amount Approach is a useful tool for estimating the amount of NPS investment required to meet a specific retirement corpus.
How Can I Utilize an NPS Calculator ?
To calculate how much corpus you will accumulate, the calculator requires the following data:
- Your current age and the anticipated retirement age
- The monthly amount that you plan to invest
- The projected profits from your NPS investment
- The number of years you wish to continue receiving your monthly pension in the post-retirement years known as the annuity term.This sum over the years must stated.
- The percentage of pension wealth invested in the annuity plan indicates the portion of your obtained corpus that will utilized to buy a pension plan.
- Throughout the post-retirement era, the returns you expect from your annuity (pension) are the predicted interest rate .
- New Nps Vatsalya Scheme 2024 :
- The NPS Vatsalya Scheme :
- NPS Vatsalya Scheme’s advantages :
- Tax Benefits of the National Pension Scheme :
- National Pension Scheme Eligibility :
- The National Pension Scheme (NPS): How Do I Invest ?
- Process Offline
- Process Online
- How do you Login National Pension Scheme account ?
- Types Of NPS Accounts :
- Documents Required to Open NPS Account :
- The NPS Calculator :
- There are two applications for the NPS calculator:
- How Can I Utilize an NPS Calculator ?